I think a lot of the confusion comes from agencies (and scanner hobbyists) that previously treated undecodable modes as de-facto encryption - i.e. DMR = you can't hear me. Suddenly a radio manufacturer comes along and makes DMR available, and people misconstrue that as the radio manufacturer being able to defeat "encryption". They're defeating an attempt to prevent comms from being heard (and there is always a debate about whether an agency went to that protocol/mode as a means of preventing comms from being heard, but let's assume they did).
Encryption is another beast entirely. Encryption is an explicit method to prevent monitoring of comms. It is protected in law. There is no protection in law that says scanner manufacturers (and people) can't make/use radios that have DMR or NXDN or P25 or any of those; it's perfectly legal for Motorola, Kenwood, Uniden, Whistler, etc etc etc., to build, market, & sell a radio that will receive on any of those modes.
DMR, P25, etc., is like making a door that will let you go through if you can push a button. People without the ability to push the button are not able to enter, but it's not because they're being specifically blocked out. Encryption is putting a door there with an actual keyed lock on it. Nobody except the people with the key are supposed to be able to get through that door.
Asking for scanners to be able to defeat encryption is like asking for a way to get through any locked door without a key.